U.S. Treasuries are mixed with shorter tenors expected to show slight relative strength while 10s and 30s are set for a slightly lower open.
Overnight action saw the release of mostly disappointing Services PMI readings from major economies, though most readings remained in expansionary territory.
China’s Ministry of Commerce announced that foreign entities will have to request permission to export gallium and germanium, two metals vital to electronics manufacturing, from China. Germany’s Economy Minister Habeck warned that it would be a problem for Germany if China extended these restrictions to include lithium.
In the U.S., UPS employees are on track for strike action after negotiations with teamsters collapsed.
Crude oil is revisiting its 50-day moving average (71.48) while the U.S. Dollar Index is up 0.2% at 103.18.
2-yr: UNCH at 4.92%
3-yr: UNCH at 4.57%
5-yr: UNCH at 4.19%
10-yr: +1 bp to 3.87%
30-yr: +2 bps to 3.89%